Is the 1-Year MBA on the Growth Path in the U.S.?

Top business schools in the United States of America continue to hold on to the traditional 2-year MBA programs even when aspirants in Europe and countries across the world have been showing an increasing preference for the shorter 1-year MBA programs. But this situation may be in for a change.

The first indicator, as seen in the GMAC 2016 Application Trends Survey Report, is a fall in the application numbers for full-time, two-year MBA programs in the US at 53% of business schools surveyed. Globally, 48% of two-year programs reported a drop in applications compared to 2015, while 9% said there was no change in numbers.

Interestingly, the GMAC survey found that 55% of one-year MBA programs reported an increase in domestic applicants. Among the b-schools offering the 1-year full-time MBA is the Samuel Curtis Johnson Graduate School of Management at Cornell University, Ithaca, New York.

Vishal Gaur, Associate dean for MBA at Johnson, in an interaction with BusinessBecause, expressed optimism for the growth of the 1-year format. He felt that a gradual shift may be happening. An indicator is a steady increase seen in the number of applications for the 1-year MBA that has led to the intake being increased from 40 to more than 70 within a few years. During the same period, the number of applicants for the school’s 2-year program has remained stable.

Johnson’s 1-year MBA also has 53% international students compared to 33% in the 2-year program, an indicator of the international acceptance of the shorter format.

“The two-year investment in the US can cost upwards of $300-to-400,000 dollars including opportunity cost. And people are more sensitive to the MBA’s return on investment now than they may have been a few years ago,”

However, one of the factors holding back the growth of the 1-year MBA is the absence of the summer internship. Prof Shashi Matta, MBA program director at The Ohio State University’s Max M Fisher College of Business, told the London-based publication that around 60% of the students managed to secure jobs following their internship. He says the college has looked into the possibility of a 1-year MBA program, spoken to some of the peer schools but remains unconvinced about the demand for the format in the U.S.

However, Matt Merrick, associate dean of degree operations at Northwestern University’s Kellogg School of Management, is confident about the one-year MBA’s growth prospects in the US. He says Kellogg’s one-year MBA is not an accelerated program. It carries all the benefits of our traditional two-year MBA. From June to June, students have the access to the same on-campus recruiting, the same global and travel opportunities and the same selection of electives.

“Students can skip core courses that feel redundant with their pre-existing skill set, and choose electives that align with their personal career goals,” he adds

In Europe, 74% of full-time one-year MBA programs reported growth in application volumes in 2016, GMAC said. Interestingly, EDHEC Business School in France has seen a sharp increase in MBA applicants from the US in particular, says the school’s MBA program director Michelle Sisto.

She attributes it to the lower opportunity cost. “The two-year investment in the US can cost upwards of $300-to-400,000 dollars including opportunity cost. And people are more sensitive to the MBA’s return on investment now than they may have been a few years ago,” she adds.

Among the business schools in the US offering 1-year MBA programs is University of Pittsburgh’s Joseph M. Katz Graduate School of Business. It was the first US business school to offer a one-year MBA program way back in 1963. It takes in students with a GMAT score of at least 600 and at least two years of work experience. The classes start in the month of May.

Kellogg School of Management launched its 1-year program in 1965. The program starts in June, with three to five courses during the summer session. They then join up with the second year of the traditional two-year MBA program and finish in the following June.

The USC Marshall School of Business in Los Angeles, California, runs the IBEAR MBA since 1978. Among the unique features of the program is an opportunity for the students to pursue a 4-month long consulting experience with a real client company. The applicants need to have at least six years of work experience. The program, with a July intake, is designed for mid-career professionals training for global leadership positions.

Emory University’s Goizueta Business School has a 1-year program, launched in 1983, that starts in May with a “summer experience.” It includes a boot camp-like foray into core business topics like accounting, economics, statistics, and even an Excel review. In the fall and spring semesters, students delve into specific topics through elective courses.

Candidates should either have an undergraduate degree in a quantitative field like engineering or be able to otherwise demonstrate strong quantitative skills.

University of Notre Dame’s Mendoza College of Business starts its MBA program with an intensive summer session, before merging with the second year of the traditional MBA program. Concentrations are offered in Business Analytics, Business Leadership, Consulting, Corporate Finance, Entrepreneurship, Investments, and Marketing. The program also offers optional international immersion sessions in Brazil, Chile, or China.

University of Florida’s Warrington College of Business Administration/Hough Graduate School of Business

offers two options in its Accelerated MBA program: a 12-month option, designed for students without a business background in business, which starts in April; and a 10-month option starting in June for those who do have an undergraduate degree in business.

Southern Methodist University (SMU)’s Cox School of Business has the newest program, launched in 2015. It offers a range of concentrations, in Accounting, Finance, Strategy and Entrepreneurship, Marketing, and more.

Pepperdine University’s Graziadio School of Business and Management in Los Angeles has a 12-month program designed for students with an undergraduate degree in business or a 15-month one for those without. In the 15-month version, students can take a whole trimester to study abroad, and pursue an increased range of specialisation options.

The F.W. Olin Graduate School of Business at Babson College, Massachusetts was launched in 1991. The program offers a range of concentration, in topics from Entrepreneurship to Life Sciences & Healthcare.